Tesla is in the sky, Musk is floating away

Text/Yi Liu (Innovation Observer, Entrepreneurship Analyst)

Tesla is in the sky!

Well, I’m not talking about Tesla’s cars, but its stock price.

Tesla’s stock price has surged in the past two days, approaching the US$700 mark again, with its market value exceeding US$650 billion.

It exceeds the combined market value of the top five traditional automobile manufacturers, Toyota, Volkswagen, Daimler, General Motors and BMW, and far exceeds it.

(Toyota’s market value is approximately US$200 billion, Volkswagen is approximately US$100 billion, Daimler is approximately US$70 billion, General Motors is US$64 billion, and BMW is US$56 billion)

Not only that, Special Tesla's market value is more than half of the combined market value of all traditional fuel vehicles. In the future, it will have to gain half of the global automobile market to be worthy of this stock price.

Seeing these data, Yiliu had to admire Musk's foresight. When he used the Falcon 9 heavy rocket to take Tesla's sports car to the sky, he might have foreseen that Tesla's The stock price will skyrocket.

As the stock price skyrocketed, so did Musk’s net worth.

To what extent is it floating? In one year, wealth increased by approximately $140 billion! It is probably the combined wealth of the top three richest people in China, Zhong Suisui (founder of Nongfu Sanquan), Ma Huateng, and Jack Ma.

With a total net worth of US$167.3 billion, he surpassed Bill Gates and became the second richest person in the world after Amazon Bezos.

Last year, Musk’s net worth was more than 20 billion US dollars, ranking only 36th on the world’s richest list. Now he suddenly jumped to second place.

In terms of the speed of becoming a billionaire, Musk ranks first in the world.

Not only that, Musk has also raised the standard of getting rich overnight, no, getting rich in one year to unprecedented heights. It is really impossible to find latecomers even with a telescope.

It’s understandable to float a bit.

So he tweeted and exclaimed: Tesla’s stock price is too high!

Do you think he really thinks that? Not at all. He is demonstrating to the short sellers: short Tesla, just dream!

In July, a fund named Dorfman shorted Tesla at $470.

Because there was an obvious signal at that time. Tesla issued additional shares at $500, indicating that the company's stock price had peaked.

Brother Ma may be dissatisfied with this, so he launched a special product in the Tesla store: red shorts.

Well, it’s the kind of red that many people like to wear in their zodiac year.

I just don’t know if I learned it from Superman.

Why sell shorts?

Because the word for "short" and the word for "shorts" are both "Short".

The price of "short shorts" is not cheap, US$69.42, about 455 yuan, with "S3XY" printed in gold on the back, representing Tesla's four major models, Model S and Model 3 respectively. , ModelX and Model Y.

It is said that these short shorts were sold out within three days of their launch.

Is this kind of willfulness very Musk’s style?

Do you think the rise in stock prices is related to Tesla’s profits? No.

Tesla’s profits in the first three quarters of this year were all derived from regulatory dividends from carbon credits.

A little explanation of carbon integration. In order to promote electric vehicles, some European and American countries require traditional automobile manufacturers to produce a certain number of electric vehicles every year to promote the transformation. If the production volume is not enough, you can purchase carbon emission credits to make yourself compliant.

Tesla has no fuel vehicles and no carbon emissions, so it can be sold to traditional car manufacturers. Tesla makes money by being a charcoal seller.

So what has the biggest relationship with Tesla’s stock price?

Of course it is love!

Under the circumstances, the global economy is in a slump, currency issuance is increasing, and interest rates on deposits and financial products in Europe and the United States are negative!

Not long ago, our country issued a 4 billion euro sovereign bond in Europe, with an interest rate of negative 0.152%.

You read that right, it is negative, that is to say, if I borrow 100 yuan from you, I only need to pay you back 99 yuan after 5 years.

But what I didn’t expect was that it was robbed like crazy!

Why would anyone want to do this kind of loss-making business? There is too much money in the market.

Of course, there are also many people who are unwilling to do so. Why not use it to speculate in stocks?

Therefore, the surge in the U.S. stock market and Tesla's surge are all driven by sentiment.

It is not surprising that those short-selling institutions lost all their money when measuring Tesla using rational indicators such as profitability, sales volume, and market share.

Under the current financial situation, the market is not very good and is an asset bubble. What should I do? Can only dance with bubbles. And Tesla happens to be that harder bubble. Of course, it is also the biggest bubble.

The rise in the stock market is a good thing.

But swelling like a balloon or a snowball is definitely not a good thing.

Once the balloon bursts and the snowball melts, what’s left is, hey, there’s not a feather on the ground.

Is it a good thing that Tesla’s stock price is soaring?

That may be true for those who make money, but it may not be a good thing for Tesla as a company.

The rise in stock price does not mean that Tesla will go to heaven. Those employees who own shares take advantage of the opportunity to cash out and leave. Who is still interested in building cars? What is there to struggle for? Now is the peak moment.

Ren Zhengfei is most worried about Huawei not going public. When a striver loses his fighting spirit, that is when a company is most in danger.

When a company reaches its peak, it also begins to decline.

Tesla has gone to heaven. Its cars have gone to heaven a long time ago. Its stock price has also gone to heaven. Sooner or later Musk will go to heaven too. Well, I am talking about his immigration to Mars.

We often say that there are three mountains in front of entrepreneurs. Now, there may be more. It is too difficult for entrepreneurs to roll up the mountain.

Then why do I have to go up the mountain? Can't I go around it, dig a tunnel, or fly over?

Tesla is known as the "Apple of the automobile industry", but its status in the automobile industry is far inferior to Apple's position in the mobile phone industry. Its disruptor is already on the way.

In the next two days, Yiliu will share with you two products that compete with Tesla to see how some smart entrepreneurs surpass or even subvert Tesla.